A vertical allocation of customers or territory:
A) has the same legal effect as a horizontal agreement by competitors to allocate customers and territories.
B) is a per se violation of Section 1 of the Sherman Act.
C) is a rule of reason violation of Section 1 of the Sherman Act.
D) Both (a) and (b).
E) is no violation of the Sherman Act.

Question

Quizplus · Accepted Answer

A vertical allocation of customers or territory is considered a violation of Section 1 of the Sherman Act and has the same legal effect as a horizontal agreement by competitors to allocate customers and territories. Therefore, it is a per se violation of the Sherman Act.

A Vertical Allocation of Customers or Territory